Spring Budget 2020 – Company cars and vans

Company cars and vans

Spring Budget 2020 – Company cars and vans

Where employees are provided with fuel for their own private use by their employers, the car fuel benefit charge is applied. The fuel benefit charge is determined by reference to the CO2 rating of the car, applied to a fixed amount. HMRC has confirmed that the car fuel benefit charge, fixed amount, will increase in 2020-21 to £24,500 (from £24,100).

The fuel benefit charge is not applicable when the employee pays for all their private fuel use.

The standard benefit charge for private use of a company van will increase to £3,490 (from £3,430). A company van is defined as ‘a van made available to an employee by reason of their employment’. There is an additional fuel benefit charge for a van with significant private use. The limit will increase in 2020-21 to £666 (from £655). If private use of the van is insignificant then no benefit will apply.

For more information on Company cars and vans, Book a Free Consultation

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